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Asha (Head - Operations)     24 August 2012

Gratuity eligibility

Hi, I have worked in my company for the past 4.5 years. Now they have asked me to resign and they will pay me 6 months salary as compensation.( 3 months notice period and rest as special discretionary allowance).

When I questioned as to my gratuity they have informed that I am not eligible for the same.

 

Please confirm if this is correct.

 

regadrs,

A

 



Learning

 4 Replies

Kumar Doab (FIN)     24 August 2012

You have posted that:

 

--“ Now they have asked me to resign”.

Employee should record such transactions {audio/visual} and keep a witness/evidence.

It is an offence to coerce, force, cajole, pressurize an employee to write down resignation and give up employment.

You should not submit resignation with immediate effect at any cost. If you end up tendering abrupt resignation under force, you should withdraw it at once by email/letter/fax/telegramme/redg post and narrate that Mr/Ms …….designation, dept, address has extracted it by force and dictated the language of resignation on dated……and have stated that you shall not be eligible for gratuity after you have written and signed your resignation as dictated by them. The onus of proving that resignation was extracted by force shall be on you; hence you may record and keep some witness. Employees should help each other. If there are many employees facing similar situation, all of them should stand as witness to each other.

If at all you have to resign by your own wish you may submit notice of resignation and may write effective date of resignation/last day in office and obtain acknowledgment under seal and signature from office {even if reception/counter where all mail/dak is received}.

--“ and they will pay me 6 months salary as compensation.( 3 months notice period and rest as special discretionary allowance).” Is the company closing down its operation/vertical/dept/division? It is felt that the company wants to escape from declaring retrenchment and following the provisions and repercussions of retrenchment.

The well informed and firm employees succeed in getting their rights. You may go thru the attachment as another employee Manju Saxena has succeeded as per SC judgment.

As per rules of gratuity if company is closing down it has to inform the controlling notice and notify the employees as well.

THE PAYMENT OF GRATUITY (CENTRAL)

RULES, 19721

3. Notice of opening, change or closure of the establishment.-

     4. Display of notice

 

Has this company informed controlling Authority for Gratuity which may be ALC in your case at your location?

 

Is your company following 5daysweek policy? In any case the controlling authority shall take date of reference and calculate as per provisions of the act.

The attached judgments of SC and HC have reaffirmed the provisions of the act. 

 

 

 

 

Payment of Gratuity Act, 1972

Section: 2A
Continuous service.

For the purposes of this Act, -

(a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than -

(i) one hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week;

 

 

(b) for the said period of six months, if the employee during the period of six calendar months preceding the date with reference to which the calculation is to be made, has actually worked under the employer for not less than -

(i) ninety-five days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and

(ii) one hundred and twenty days, in any other case;

 

 

You may go thru another very informative threads initiated by employees.

If you remain firm you shall succeed.

It is not clear why your employer and for that many of the employers run away from paying the payment of gratuity which in case of many of the employees is a peanut amount. In majority of the cases employee gets 15 days salary per year.

Is your company having its own trust to manage the gratuity or it has obtained a policy from LIC? Does your company have its own superannuation policy also?


Attached File : 973091138 termination manju saxena hongkong & shanghai banking ... vs govt.of india & anr. on 18 march, 2009.pdf, 973091138 rulesofpaymentofgratuity 735419210 (3).doc, 973091138 paymentofgratuityact(1).doc downloaded: 427 times

Manish (Associate Professor)     24 August 2012

Dear Sir/Madam

I, Manish Sharma, worked in private educational institute from 6th September 2002 to 27th july 2012 as a Assistant professor in private Engineering College.I have spent 09 years 10 months and 21 days as continous service without any gap.I requested to my institute for gratuity but they told me that  "You did not complete 10 years of service".kindly guide me what to do in this case.

Thanks!

Kumar Doab (FIN)     24 August 2012

You have posted that :

--“"You did not complete 10 years of service".

If you have kept your PF a/c regular you shall be eligible for pension after 10 years.

You have worked for 5 years and you are eligible for gratuity.They are either ignorant or daffar, or are cunning and want to take undue advantage of ill informed employee.

 

Look into the attachment for Gazette notification; vide which change in definition of employee and teacher has been included into category of employees.

 

[ASSENTED TO ON 31ST  DECEMBER, 2009]

 

                                           (ACT NO. 47 OF 2009)

 

                   THE PAYMENT OF GRATUITY (AMENDMENT) ACT, 2009

 

                                                          AN

 

                                                         ACT

1. (1) This Act may be called the Payment of Gratuity (Amendment)                      Short title

                      Act, 2009.                                                                             and

 

                                                                                                             Commence-

                      (2)  It shall be deemed to have come into force on the 3rd day of                      ment.

 

                      April, 1997.

--You should not submit resignation with immediate effect at any cost. You should submit notice of resignation as per clause on termination in your appointment letter.

In your notice of resignation you may mention that on your effective date of resignation/last day in office along with payment of all dues in correct FNF statement prepared for your settlement payment of gratuity should also be included.

You may also submit Form I to employer under acknowledgment with a copy to Controlling Authority of Gratuity under acknowledgment, which may be ALC at your location.

 As per rules of payment of gratuity employee can submit Form I a month in advance to employer when the date of retirement is known to employer.

7. Application for gratuity

Provided that where the date of superannuation or retirement of an employee is known, the employee may apply to the employer before thirty days of the date of superannuation or retirement.


Attached File : 973195254 gratuitygazette notification the payment of gratuity (amendment) act 2009.pdf downloaded: 241 times

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